Are you a bit confronted or tempted to cut your prices during this economic downturn?
If so, you are not alone. Professional services companies are faced with this reality, too. Today, I'm here to spare you the anxiety of possibly cutting prices. Freddy Nager over at
Atomic Tango, a creative strategy agency, gave these reasons why cutting your prices could do more harm than good:
1. It sends the message that you've been ripping your customers off all this time.
2. It means you'll have difficulty increasing your prices to "normal levels" when the economy starts jamming again.
3. It kills your profit margins, so you won't have the cash to do what might really make a difference to do during a recession: better marketing.
Freddy's blog also shares the importance of marketing the value of your services. Which leads me to my next point...
Yes, times are tough in this country, but don't lose sight. Remember who you are, what your product or service brings to the market, and how it's making a difference in the businesses of your current customers. It's time to visit Sales 101. Don't let a prospect pigeonhole you into lowering your prices, instead gently remind them of the customers your product or service has already helped (name-drop) and stick to your story.
Keep the learning going...pass it on!